Samsung Electronics said Tuesday it will sell its entire fiber optics business to Corning.

"Samsung will completely exit the business. We agreed with Corning to sell our entire assets including facilities in the local southeastern industrial city of Gumi and China," the company said in a statement.

It currently produces fiber optics in Gumi and Samsung Electronics Hainan Fiberoptics in Hainan, China.

"The deal will be completed by the first quarter of next year," it said, declining to disclose financial terms.

In a separate statement, Corning Korea said; "The acquisition of Samsung-owned fiber optics assets will help us bolster our presence in Asia and strengthen our product portfolio as Samsung has been a reliable fiber optics supplier to customers in Korea, China and countries in the Southeast Asian region."

Corning supplies glass for smartphones manufactured by Apple, Samsung Electronics and other smartphone vendors in China.

"This is a win-win deal. Corning is the world's first to develop fiber optics and has huge patents. The fiber optics business is one of the key cash-generators along with displays for Corning," said the official.

The agreement comes at a time when Samsung is realigning its business portfolio by divesting itself of non-core and unprofitable units.

During a power transition underway to Samsung-heir Lee Jae-yong, the consumer electronics giant recently dropped its defense and chemical businesses.

Meanwhile, it is scaling down business divisions in accordance with the group-wide strategy to depart from "department-style" management.